If your portfolio needs a “Banana Boat and Coco Puff” I may have found just what the Doctor ordered…

PharmaMallinckrodt ceutical Company, symbol $MNK.

It’s been a tough few years for this stock, but we all get a little down sometimes, and nothing, I mean nothing can keep you down big dog.

We are seeing an ever so slight uptrend in the RSI, and with the name sporting nearly 20% of its float short, a slight rally may be enough to get some shorts to cover.

Taking into account daily data since the beginning of 2016, $MNK has fallen into the third deviation zone from point of control. It’s due for a bounce, at the very least good for a mean reversion trade.

For some, buying in an area like this is quite uncomfortable. My advice to you would be to get comfortable being uncomfortable. You are correct, it has done nothing but cause investors pain and shorts have been in control. But, like I said previously, nothing can keep the big dog down. If you initiate risk here, you are in a good spot.

I’ll see ya’ll on the dark side of the moon. 🙂

OC